AO World Plc (AO.L), an electrical retailer, said on Wednesday that it has agreed to buy musicMagpie Plc (MMAG.L), an online electronic retailer, through its wholly-owned subsidiary, AO Ltd, for 9.07 pence per share in cash.
The acquisition values musicMagpie at around 9.982 million pounds. This represents a premium of around 58 percent to the closing price of 5.75 pence per musicMagpie share on October 1.
The transaction represents a premium of around 58 percent to the volume-weighted average closing price of 5.75 pence per musicMagpie share for the one-month period ended on October 1.
The acquisition is expected to conclude during the first-quarter of 2025.
Geoff Cooper, Non-Executive Chair of AO, said: "The proposed acquisition of musicMagpie presents a strategic opportunity to integrate one of the UK's leading mobile recommerce operators into our portfolio. With highly complementary business models, this acquisition will enable us to broaden our customer offerings while simultaneously advancing our sustainability objectives."
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